Investment has become a popular choice for people to meet their financial needs in the future. Growing public awareness of long-term financial planning has made the returns from investments one of the key solutions for future funding needs.

When choosing an investment instrument, it is important to consider the investment duration. Based on duration, investments are divided into long-term and short-term investments. Long-term investments are expected to generate profits over an extended period, while short-term investments aim for returns within a relatively short timeframe, usually from a few months up to one year.

For beginners, selecting the right investment instrument can be challenging. Lack of knowledge about the types and risk levels of each investment instrument is a common hurdle for those new to investing.

Here are some investment instruments suitable for beginners:

1. Money Market Mutual Funds
Mutual funds are considered relatively safe for beginners. Besides having professional fund managers who help manage investors’ money, money market mutual funds are short-term investments with relatively low risk.

2. Time Deposits
A time deposit is a short-term investment available at almost all banks. It works similarly to saving accounts but funds cannot be withdrawn before a fixed period. Early withdrawal usually incurs a penalty fee.

3. Precious Metals
Precious metals, especially gold, are long-term investment instruments with relatively low risk. Investing in gold has been a traditional practice for centuries. With its stable and often increasing value, gold remains a favorite investment option for beginners.

4. Retail Savings Bonds (SBR)
Retail Savings Bonds are government-issued debt securities. Investing in SBR not only provides you with returns but also helps fund the government. Known in Indonesia as Surat Berharga Negara (SBN), SBR is a short-term investment with low risk.

5. Peer-to-Peer (P2P) Lending
P2P Lending is a financial technology platform that facilitates loans to borrowers, especially micro, small, and medium enterprises (MSMEs). Investing in P2P Lending means you act as a lender, providing capital that will be loaned to businesses in need.

Do you have a clearer picture now of which investment instrument to choose as a beginner? Whatever investment you decide on, remember that every investment carries some level of risk, even if it’s low. To ensure the safety of your investment, it is advisable to verify investment providers through the official Financial Services Authority (OJK) website.